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Ares Capital (ARCC) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Ares Capital (ARCC - Free Report) closed at $19.86, marking a -1.29% move from the previous day. This move lagged the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.

Shares of the private equity firm have depreciated by 10.54% over the course of the past month, underperforming the Finance sector's gain of 1.43%, and the S&P 500's gain of 4.06%.

Market participants will be closely following the financial results of Ares Capital in its upcoming release. The company plans to announce its earnings on October 28, 2025. It is anticipated that the company will report an EPS of $0.5, marking a 13.79% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $764.06 million, down 1.41% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.01 per share and a revenue of $3.02 billion, indicating changes of -13.73% and +0.85%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Ares Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Ares Capital is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Ares Capital is currently trading at a Forward P/E ratio of 10.02. For comparison, its industry has an average Forward P/E of 7.94, which means Ares Capital is trading at a premium to the group.

The Financial - SBIC & Commercial Industry industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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